Solana Crumbles Below $100 as Trade Wars Crush On-Chain Activity
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Solana's price tanked spectacularly Wednesday, plunging below the critical $100 mark as crypto markets reeled from U.S.-China trade war fears. The once-mighty SOL token crashed a brutal 18% in just 24 hours, bottoming out at $97 as traders panic-sold amid escalating geopolitical tensions. Talk about a rough day. Trading volume exploded to $5.39 billion as investors headed for the exits.
Solana's brutal 18% crash sent shockwaves through crypto markets as U.S.-China tensions pushed SOL below $100 amid panic-selling.
This isn't just a bad day for SOL – it's part of a painful longer-term trend. The token has now shed over 60% from its mid-January peak, with the recent breakdown below $121 support accelerating the freefall. Bitcoin's inability to hold above $82,000 didn't help matters either, dragging the entire crypto market into the red.
For traders looking upward, recovery won't come easy. SOL now faces stiff resistance at $100, with additional barriers at $105 and $116 before any meaningful bounce can occur. Market analysts predict SOL could test the $84-$92 range if current support fails, with some bearish scenarios pointing to a revisit of the $80-$90 liquidity zone.
The carnage has been especially brutal for leveraged traders. Over $62 million in SOL long positions got liquidated in a single day. Ouch. Hourly trading volume spiked to 12.5 million SOL as panic gripped the market. Active network addresses surged to 1.2 million, showing just how many people were scrambling during the crash. Technical indicators paint an equally grim picture with RSI at 35 suggesting potential for further downside pressure. The market's extreme fear sentiment is clearly reflected in the fear and greed index hitting a monthly low of 23.
Interestingly, some whales see opportunity in chaos. One address staked a massive 71,318 SOL worth $7.63 million despite the bloodbath, suggesting strong hands remain convinced of Solana's long-term potential. The network's low transaction fees and growing dApp ecosystem remain key strengths, even if currently overshadowed by macro headwinds.
For now, SOL's immediate fate remains tied to broader market sentiment and trade war developments. The cryptocurrency led altcoin losses with both SOL/BTC and SOL/USD pairs facing significant pressure. Solana bulls desperately need a break from geopolitical drama if they hope to reclaim $100 anytime soon.
